DFW Home Prices

Powell Continues FOMC’s Legacy Of Serial Arsonists

The Federal Reserve FOMC announced another Federal Funds rate hike, raising the target rate to 2.5 percent. That was widely anticipated. What the market did not like was a less-than dovish stance from Jerome Powell and his merry band of serial arsonists, as he stuck to the script that everything is awesome in the land of milk and honey. Aside from the drop in 10-year Treasury yields, there are important ramifications for the real estate market as the failures of Federal Reserve policy, and the consequences that come with it, become increasingly evident. Make no [...]

U.S. Existing Home Sales Down Seven Percent In November

The National Association of Realtors reported existing home sales for November at a seasonally adjusted annual rate (SAAR) of 5.32 million. This was up slightly from October but still down seven percent compared to the same time last year. The spike in mortgage interest rates was still lingering over the real estate market in November. The median price of an existing home sold in November was $257,700 in November, a rise of 4.2 percent year-over-year and the 81st consecutive month of year-over-year home price increases. The average price of an existing home sold in November [...]

Denton County Home Prices Drop As DFW Sees Worst Sales In 7 Years

Denton County home prices slid 2 percent in November as the DFW housing market experienced the worst sales decline in 7 years. The good news is that the sales volume estimates in the official press releases are now more reflective of reality. The bad news is that actual home sales in Dallas-Fort Worth are still rather soft. Home sales in Denton County dropped 9 percent in November, in line with the 8 percent decline seen for DFW. Pending home sales in Denton County slid 3 percent compared to the same time a year ago, slightly [...]

Yield Curve Inversion And Denton County Real Estate Prices

With renewed talk of yield curve inversion during the past week Denton County real estate prices are going to be interesting to watch. Some people are wondering how low the Federal Reserve's balance sheet will go as the try to unwind/reverse years of quantitative easing. As I was commenting earlier this morning, that balance sheet probably won't go as low as Fed officials originally planned. For all of the collective PhD economic talent employed at the Fed, they still can’t forecast their way out of a paper bag. The Fed has barely rolled off 10 [...]

Toll Brothers Net Orders Plunge 13 Percent In Q4

Shares of luxury home builder Toll Brothers fell out of bed today. Toll reported higher net income and higher revenue on a 12 percent increase in home closings for the quarter, but the market sniffed out what some people like myself were anticipating with Toll's latest quarter... a big drop in demand for expensive luxury homes. Toll was clearing out inventory with juicy incentives during the fourth quarter, but net signed contract value plunged 15 percent while net contract units (homes) fell 13 percent. Toll's orders for California nosedived 39 percent. Oops! “In November, we saw [...]

Frisco TX Home Sales Collapse As DFW Market Turns

Home sales were down 13 percent in Frisco TX, the popular suburban Dallas community which is also home to the Dallas Cowboys. Pending sales during the month of October were even worse, falling 16 percent from the same time a year ago. The number of homes for sale in this   in this sports-minded community rose 6.2%. There are over a 1000 homes for sale in Frisco currently, but they aren't selling like they used to. Frisco's real estate problem is the same one plaguing the North Texas market in general. Prices are simply too high, [...]

High Prices, Higher Rates Stall Dallas Fort Worth New Home Market

High prices and higher rates are hammering the Dallas-Fort Worth new home market. Starts from new home builders are now expected to increase by only a few hundred homes next year. I am not surprised. I covered this development a few days ago in my post on DR Horton's fourth quarter results, but a recent piece in the Dallas Morning News citing an industry insider/expert highlights the failure of local media to report on what is actually happening. My October housing market report for the DFW area explains why the correction in the local real estate [...]

Denton County Home Sales Continue Sliding In October

Denton County Texas home sales continued to slide in October as the real estate market softened throughout the Dallas-Fort Worth area. Closed sales in Denton County fell roughly 8 percent for the month of October compared to last year. This is slightly worse than the 6% sales decline for the Dallas-Fort Worth metro area. Pending single-family home sales in the Denton County area were down about 14 percent for the month of October as the stock market swoon also hit the local housing sector. The official statistical estimate of a 9 percent pending sales decline [...]

High End Dallas-Fort Worth Real Estate Could Get Crushed

As I detailed yesterday, the Dallas-Fort Worth real estate market fell out of bed last month. With pending home sales registered to post some of the worst numbers in years and inventory marching higher across the Dallas Fort Worth area, it is painfully clear that that the real economy in the DFW area is more fragile than the sell-side pundits would have us believe. I'm not surprised, because I cover the hype and spin in the real estate sector regularly on this blog. In a recent interview with Bloomberg, 'Black Swan' author Nassim Taleb specifically [...]

October Swoon Suggests Denton County Real Estate Market Correction Just Getting Started

Denton County's real estate market is going to post some very soft numbers again for October. Both closed and pending home sales are going to be down year-over-year while pending home sales are likely going to post a double-digit decline not just in Denton County, but for the entire Dallas-Fort Worth housing market. OUCH! Available home inventory is shooting higher across the DFW area. While notable economists at the Federal Reserve, local real estate "professionals" and even the "experts" at the RECenter at Texas A&M have been dismissing recent developments as just a cooling off [...]

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